Minneapolis-based U.S. Bank said it earned $1.16 billion, or 65 cents per share, in the second quarter. That's down 3.7 percent from $1.2 billion, or 66 cents per share, during the same period last year. Revenue of $3.51 billion was up 1.5 percent from $3.45 billion a year ago.
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The company said it wrote off $191 million for the second quarter in credit losses, up from $125 million a year ago, due mostly to consumer credit cards.
Despite $191 million written off, mostly from consumer CCs, they still earned over $1 billion last quarter. The write off represents a 52.8% rise over the same quarter last year.
I have to wonder whether U.S. Bank is padding it's losses by raising the fees tacked on before charging off the debt. Liz Warren has said some banks admit they charge $2 in fees for every $1 in actual losses when charging off bad debts.
If that's true for U.S. Bank, then their losses actually rose from $41.7 million to $63.7 million 2Q from 2006 to 2007. Also means their profit rose 0.31% 2Q from 2006 to 2007.
